In order to boost competition in the international private leased circuit segment, the Telecom Regulatory Authority of India (TRAI) has issued a draft regulation mandating open access to landing facilities at cable landing stations (CLSs). It has also stated that CLS owners must publish a “Cable Landing Station-Reference Interconnect Order (CLS-RIO)”, containing the terms and conditions for access facilitation including eligibility, time-frame and charges.
The draft regulation, if cleared, is slated to eliminate a major bottleneck to growth in the international long distance (ILD) segment. According to TRAI, the regulation will not only reduce the cost of international bandwidth but also ensure its availability in a timely and fair manner to ILD operators (ILDOs) and internet service providers (ISPs). It will put an end to the landing station disputes earlier witnessed between Videsh Sanchar Nigam Limited (VSNL) and Reliance Communications-owned Flag Telecom.
Currently, all the submarine CLSs in India are operated and managed by a handful of ILDOs such as Bharti Airtel and VSNL. For submarine cables built by consortiums, typically the consortium member in each country where the cable lands, manages the landing station.Hence, it is possible for a cable system owner with significant market power to delay the provision of resources, through higher charges or any other barriers, to another player.
Given this, TRAI has set out to ensure that new operators have access to submarine cable capacity in the same way as the consortium members do.
To this end, it has released a consultation paper titled, “Access to Essential Facilities (including landing facilities for submarine cables) at Cable Landing Stations”, to discuss the relevant aspects of the issue, namely, co-location, including access facilitation, operation and maintenance, and co-location charges, timeframe and other terms and conditions of access at CLSs.
The key features of the proposed terms and conditions are:
Moreover, TRAI has noted that ISPs are also eligible for setting up submarine CLSs for international gateways for internet in order to carry internet traffic. Consequently, in the future, it is quite possible that ISPs may set up submarine CLSs for international gateways for the internet.
Key issues Several issues were raised during the consultation process. These included:
TRAI has invited stakeholders to give their comments and discuss the issue. All in all, considerable movement can be expected in the international bandwidth segment in the near future.